TORONTO, Nov 14 (Reuters) - The Canadian dollar steadied against its U.S. counterpart on Friday as oil prices rose and domestic data supported the Bank of Canada's recent move to signal its interest rate cutting campaign is on hold.
The loonie was trading nearly unchanged at 1.4025 per U.S. dollar, or 71.30 U.S. cents, after moving in a range of 1.4015 to 1.4045. For the week, the currency was up 0.2%, clawing back some ground after it hit a near seven-month low earlier in November.
Canadian factory sales grew by 3.3% in September from August on higher sales of transportation equipment, as well as petroleum and coal products. Analysts had forecast an increase of 2.8%. Separate data for September showed wholesale trade increasing by 0.6%.
"The BoC is firmly on hold and data has been on the firmer side since the conditional pause was enacted late last month," strategists at RBC Capital Markets, including Daria Parkhomenko, said in a note. "Given this and markets awaiting more clarity on the U.S. economic outlook, USD/CAD is likely to remain range-bound, with 1.4001 proving to be a sticky support level this past week."
The price of oil , one of Canada's major exports, settled 2.4% higher at $60.09 a barrel, boosted by supply fears after the Black Sea port of Novorossiisk halted oil exports following a Ukrainian drone attack.
The U.S. dollar (.DXY), rose against a basket of major currencies amid rising expectations the Federal Reserve will hold interest rates steady in December and after Wall Street clawed back its earlier declines.
Canadian government bond yields rose across the curve, tracking moves in U.S. Treasuries. The 10-year was up 4.2 basis points at 3.228%.
Reporting by Fergal Smith; Editing by Nia Williams
